Commercial Niven pursues policy of loan repayments

Press, 5 October 1977, Page 42

Commercial Niven pursues policy of loan repayments

PA Wellington Niven Industries, Ltd, was able to repay a substantial amount of its short-term borrowings in the year ended June 30, says the chairman (Mr A. M. Jolly) in the annual report. “Pursuing the announced policies of stock rationalisation and the liquidation of non-earning assets, and in line with the programmed reorganisation a total of $650,000 was retired during the year," he says. Another $250,000 had been repaid since balance date. "Generating sufficient cash within trading to finance rapid inflation presents all

businesses with severe problems.

“Our programme to release funds with low-earning areas therefore continues to be a priority. “Bank overdrafts are below the levels of last year, and trade accounts payable are also reduced,” he says.

“With record inflation the debtors might be expected to be much higher than last year.

“The figure for the year, including Waikato Sheet Metals for the first time, is only 6 per cent higher than 1976, reflecting improved credit control and the elimination of unprofitable areas of business.

"Similarly, stocks in hand and transit have been reduced in volume giving a dollar value just below that of last year. “The balance sheet shows

that a lot of progress has been made in the last 12' months.” The ratio of shareholders’; funds to total liabilities has increased from 44 per cent to 46.2 per cent and the ratio on secured borrowings has fallen from 34.1 per cent to 25.2 per cent. “As at June 30, the company’s liquidity was reduced by some exceptional outstanding accounts, which have since been received,” says Mr Jolly. As announced, group net profit was $504,504, compared with a loss of $143,347 in the previous year. A dividend of 6 per cent (8c a share) compared with nil the previous year, is being paid from realised capital profits (tax-free).

Shareholders’ funds rose $458,977 to $8,681,534, with earnings a share 15.8 c (4.5 c